E also here.

A) The judges have no relevance here.
B) The number of films is irrelevant b/c the argument specifically talks about rates of acceptance.
C) Past acceptance rates have nothing to do with this year’s acceptance rates
D) This doesn’t explain the apparent contradiction. We are told the acceptance rate in each category does happen to be equal for both foreign and domestic.
E) This makes sense. Imagine the following scenario:

Category: 1 2 3 4 5 6 7 8 9 10
Foreign: 5% 5% N/A N/A N/A N/A N/A N/A N/A N/A
Domestic: 5% 5% 20% 20% 20% 20% 20% 20% 20% 20%

In the above scenario, both statements can be true. Within each category where foreign and domestic films were submitted, the acceptance rate is the same (Fact 1). However, imagine that no foreign films were submitted for categories 3 – 10 and domestic films were submitted across all categories. The overall acceptance rate of domestic films would be higher (Fact 2).